Borough of Somerville, NJ
Somerset County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of Somerville 6-2-86 as Ord. No. 1008. Amended in its entirety 3-15-93 by Ord. No. 1141; 4-19-99 by Ord. No. 2076; 11-4-2019 by Ord. No. 2589. Further amendments noted where applicable.]
The definitions contained in N.J.S.A. 40A:21-3 are incorporated herein by reference as if set forth at length. As used in this chapter, words shall have the meanings as so defined unless a different meaning is expressed.
The Borough hereby authorizes the utilization of tax exemption and abatement in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of residential and multiple dwellings, commercial and industrial structures for five-year tax exemptions and abatements as authorized by N.J.S.A. 40A:21-1 et seq., throughout the entire municipality, but only to the extent set forth herein.
Improvements to dwellings more than 20 years old are eligible for tax exemption. The first $25,000 in the Assessor's full and true value of improvements for each such dwelling unit shall be regarded as not increasing the value of the property for a period of five years, notwithstanding that the value of the property to which the improvements are made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the improvements, unless there is damage to the dwellings through action of the elements sufficient to warrant a reduction.
Improvements to multiple dwellings are eligible for tax exemption. The Assessor's full and true value of the improvements shall be regarded as not increasing the value of the property for a period of five years notwithstanding that the value of the property to which the improvements are made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment existing thereon immediately prior to the improvement unless there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction. As used in this section, "improvements" shall not be construed to include an increase in the number of dwelling units.
Improvements to commercial and industrial structures are eligible for tax exemption for a period of five years. Fifty percent of the Assessor's full and true value of the improvements shall be regarded as not increasing the value of the property notwithstanding that the value of the property to which the improvement is made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment existing thereon immediately prior to the improvements, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
Construction of new commercial and industrial structures shall be eligible for tax exemption and abatement. Any such exemption and abatement shall be subject to the owner and Borough entering into a tax agreement as provided by N.J.S.A. 40A:21-10.
A. 
The applicant shall furnish to the municipality all information required by N.J.S.A. 40A:21-9.
B. 
The tax agreement shall provide for the applicant to pay to the Borough in lieu of full property tax payments an amount annually to be computed by one, but in no case a combination of the three, formulas set forth in N.J.S.A. 40A:21-10, i.e., the "Cost," "Gross revenue," or "Tax phase-in" basis.
An additional improvement or construction, completed on a property granted a previous exemption or abatement during the period in which such previous exemption or abatement is in effect, shall be qualified for an exemption and/or abatement, just as if such property had not received a previous exemption or abatement. In such case, the additional improvement or construction shall be considered as separate for the purposes of calculating exemptions and abatements, except that the assessed value of any previous improvement or construction shall be added to the assessed valuation as it was prior to that improvement or construction for the purpose of determining the assessed valuation of the property from which any additional abatement is to be subtracted. No more than the first $25,000 in the Assessor's cumulative full and true value of the initial and additional improvements for each dwelling unit more than 20 years old shall be regarded as not increasing the value of the property, notwithstanding that the value of the property to which the improvements are made is increased thereby.
Every application for exemption or abatement and every exemption and abatement granted shall be subject to all the provisions of N.J.S.A. 40A:21-1 et seq., and all rules and regulations issued thereunder.
No exemption shall be granted pursuant to this chapter except upon written application therefor filed with and approved by the Tax Assessor on a form and in the manner as established in P.L. 1991, c. 441.